New Delhi: The government will come up with a new Bill to regulate the micro-finance institutions after consultation with states, finance minister Arun Jaitley told Lok Sabha on Friday. “We have started the consultation process with everyone, including state governments, to prepare a new Bill,” he said. The Micro Finance Institutions Development and Regulation Bill, 2012, was introduced in Lok Sabha on May 22, 2012, and was referred to the Standing Committee, which submitted its final report on February 17, 2014. The committee had urged the government to have wider consultations with state governments and stakeholders and bring forth a fresh legislation before Parliament, he said. The Bill lapsed due to the dissolution of Lok Sabha and shall have to be introduced fresh, he added. Jaitley said a large number of MFIs are self-help groups — around 46% — and many of them are run by women. http://www.financialexpress.com/news/new-mfi-bill-after-consulting-states-jaitley/1273940
RBI FINES 12 BANKS IN DCHL LOAN DEFAULT CASE
Mumbai: The Reserve Bank of India (RBI) has fined 12 banks, including ICICI Bank, Axis Bank, Canara Bank and Corporation Bank, a total of Rs 1.5 crore in relation to the Deccan Chronicle Holdings Ltd (DCHL) loan default case. This fine has been levied as a result of not following proper procedures while lending to DCHL. “After considering the facts of each case and the individual bank’s reply, as also, personal submissions etc., by some of the banks before its Committee of Executive Directors, the Reserve Bank came to the conclusion that some of the violations were substantiated and warranted imposition of monetary penalty as determined above,” RBI said. The banks collectively had a total exposure of around Rs 4,000 crore. ICICI Bank, the second largest lender of the country, has been slapped with a fine of Rs 40 lakh, the highest penalty in this case. The remaining 11 banks have been fined between Rs 5 lakh and Rs 15 lakh. “RBI had been communicating with the banks for a while now, seeking clarity on the know your customer (KYC) procedure and due-diligence with regard to lending to DCHL. The central bank had been trying to ascertain what was lax on the bank’s part in this case,” said a senior official from a bank fined by RBI. http://www.business-standard.com/article/finance/rbi-fines-12-banks-in-dchl-loan-default-case-114072600154_1.html
BANKS NOT ALLOWED TO TRADE IN BONDS FOR INFRA LENDING: RBI
Mumbai: Banks will not be allowed to trade bonds issued by other lenders for infrastructure lending that would be exempted from mandatory reserve requirements under the guidelines issued last week, said Reserve Bank of India (RBI) Deputy Governor R Gandhi. RBI last week allowed lenders to issue bonds for infra lending but barred the banks from holding each other’s bonds. “Restriction on cross- holding does apply to trading also,” Gandhi said. Gandhi said the central bank would prefer that these bonds for infra lending attract investors from outside the banking sector. “The idea is funds to come from outside the banking system,” he said. Dealers had been confused about whether the cross-holding restriction also meant banks were not allowed to trade in these bonds, given that lenders are crucial market makers in this segment. “Debt capital market traders in banks will help create liquidity in this market because they are market makers; otherwise, liquidity in this segment will not pick up,” said a senior dealer at a bank. http://www.business-standard.com/article/finance/banks-not-allowed-to-trade-in-bonds-for-infra-lending-rbi-114072500297_1.html
RBI FREEZES FII EXPOSURE IN REPCO, SOUTH INDIAN BANK
Mumbai: The Reserve Bank of India on Friday said foreign investors cannot purchase shares of Repco Home Finance and South Indian Bank as their shareholding in these companies has crossed the threshold limit. In the case of Repco Home Finance, the central bank said the shareholdings by foreign institutional investors/ registered foreign portfolios investors (RFPIs) under portfolio investment scheme in the company have crossed the limit of 24 per cent of its paid-up capital. Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs/RFPIs. In the case of South Indian Bank, the RBI said the foreign shareholding through FIIs/ RFPIs/ non-resident Indians/ persons of Indian origin (PIO), foreign direct investment (FDI), American depository receipts (ADRs) and global depository receipts (GDRs) in the bank has crossed the prescribed threshold limit under the extant FDI policy. Hence, further purchases of equity shares of the bank would not be allowed through stock exchanges in India on behalf of FIIs/RFPIs/NRIs/PIOs and through FDI/ADRs/GDRs. http://www.thehindubusinessline.com/todays-paper/tp-markets/rbi-freezes-fii-exposure-in-repco-south-indian-bank/article6250735.ece
RBI SLAPS TOTAL OF RS. 1.5-CR PENALTY ON 12 BANKS IN DECCAN CHRONICLE HOLDINGS CASE
Mumbai: The Reserve Bank of India has imposed monetary penalties, ranging from Rs. 5 lakh to Rs. 40 lakh, on 12 banks including ICICI Bank, HDFC Bank, Axis Bank, Canara Bank and IDBI Bank, in the case of the financially troubled Deccan Chronicle Holdings Ltd for violation of its instructions/directions/guidelines. The central bank imposed the maximum penalty of Rs. 40 lakh on ICICI Bank; followed by Rs. 15 lakh each on Axis Bank and IDBI Bank. A penalty of Rs. 10 lakh each has been imposed on seven banks — Andhra Bank, Canara Bank, Corporation Bank, IndusInd Bank, Kotak Mahindra Bank, State Bank of Hyderabad and Yes Bank, the RBI said in a statement. HDFC Bank and Ratnakar Bank have been slapped with fines of of Rs. 5 lakh each. The Reserve Bank said it had carried out a scrutiny of the loan and current accounts of the Hyderabad-based Deccan Chronicle Holdings Ltd (DCHL), in certain branches of the above-mentioned banks in late 2013. Based on its findings, the Reserve Bank issued show cause notices in March 2014, to which the individual banks submitted written replies. “After considering the facts of each case and the individual bank’s reply, as also, the personal submissions by some of the banks before its Committee of Executive Directors, the apex bank concluded that some of the violations were substantiated and warranted imposition of monetary penalty,” the RBI said. The central bank said its action to impose penalty is not intended to pronounce upon the validity of any transaction or agreement entered into between the concerned bank and the borrower. DCHL, which publishes four newspapers — Deccan Chronicle, Asian Age, Financial Chronicle and Andhra Bhoomi — has defaulted on loans aggregating to about Rs. 4,000 crore to various banks. http://www.thehindubusinessline.com/todays-paper/tp-money-banking/rbi-slaps-total-of-rs-15cr-penalty-on-12-banks-in-deccan-chronicle-holdings-case/article6250753.ece
PROFITABILITY OF PSBs UNDER STRESS
Kolkata/New Delhi/Chennai: State-run banks’ profitability in the first three months of this financial year have remained under stress. A rise in bad loans, higher provisioning and loss on sale of investments have dragged down their earnings growth. Four public sector banks – Allahabad Bank, Indian Bank, Punjab National Bank (PNB) and UCO Bank – announced their first quarter earnings on Friday. Of these, two reported year-on-year decline in their profit after tax; the other two saw moderate growth in net profit. PNB said its net profit for the quarter ended June increased by 10 per cent from a year earlier to Rs 1,405 crore. However, there was a sharp rise in non-performing assets (NPAs). The gross bad loan ratio deteriorated to 5.48 per cent from 4.84 per cent a year earlier, while its net NPA ratio was up four basis points to 3.02 per cent at the end of the quarter. “NPAs continue to engage our attention in the current environment. An improvement in economic situation will probably help us better our asset quality. We are hopeful that our next NPA number will be better,” said K R Kamath, chairman and managing director, in his post-earnings comments. Kolkata-based UCO Bank saw its April-June net profit rise only two per cent over a year, to Rs 521 crore. While the lender was able to improve its asset quality, lower treasury income and higher tax provisions limited its earnings growth. http://www.business-standard.com/article/finance/profitability-of-psbs-under-stress-114072600153_1.html
BANK OF INDIA TO RAISE RS 2,500 CR
Mumbai: Bank of India is set to raise Rs 2,500 crore via perpetual bonds. The primary issue size is Rs 1,250 crore, with a greenshoe option (to have an additional size of an equal amount). The tenure of the bonds is 10 years, with a call option at the end of the 10th year. The coupon rate of these bonds has been set at 11 per cent. These are Basel-III compliant bonds. “In this type of bonds at the point of non-viability, banks may have to write off capital and a part of the perpetual capital. In the event of problems in the bank, the coupon will not be paid and the principal haircut is also applicable. Due to this reason, these bonds are issued at a higher coupon compared to other instruments in the similar tenure,” said Ajay Manglunia, senior vice-president (fixed income) at Edelweiss Securities. There are loss-absorption clauses, which make these issues lesser attractive for the investors, due to which there is lower appetite. These issues are made attractive with higher coupon rates. Manglunia added that people were waiting for this issue to get subscribed so that others banks can follow. “The attractive coupon may woo investors. Besides, Bank of India is a reputed bank and is likely to be eligible among the systemically important banks, due to which investors may be willing to take these bonds.” http://www.business-standard.com/article/finance/bank-of-india-to-raise-rs-2-500-cr-114072600152_1.html
UCO BANK Q1 NET UP 2% ON INTEREST INCOME
Kolkata: UCO Bank on Friday reported a 2 per cent rise in net profit to Rs. 522 crore for first quarter of FY-15, over the Rs. 511 crore reported in the corresponding previous period. The profit came on the back of a 21 per cent increase in total interest income to Rs. 5,073 crore; and a cut in provisioning by Rs. 224 crore to Rs. 571 crore between April and June. Other income, however, fell 30 per cent to Rs. 322 crore ( Rs. 462 crore). “The decline in other income is because of reduced profit on treasury operations,” Arun Kaul, CMD, UCO Bank, said. The restructured loan portfolio stood at Rs. 12,844 crore as on June 30. It restructured loans worth Rs. 1,673 crore in the first three months of the fiscal. The Kolkata-based lender saw Q1 deposit growth of 14 per cent; advances grew 14.32 per cent. The bank, however, saw a substantial reduction in gross and net non performing assets (NPAs) both sequentially and on a year-on-year basis. Gross non performing assets came down nearly 12 per cent to Rs. 6,346 crore between April-June period in FY-15, as against the Rs. 7,178 crore during the same period last year. Gross NPA per cent too improved to 4.31 (5.58). http://www.thehindubusinessline.com/todays-paper/tp-news/uco-bank-q1-net-up-2-on-interest-income/article6250811.ece
FUNDING OF LONG-TERM INFRASTRUCTURE LOANS WILL OFFER BANKS GREATER FLEXIBILITY: IOB CHIEF
Chennai: While the Budget proposals allow banks to issue long-term infra bonds without reserve requirements, this is applicable only for incremental sources; thus, it will take a while for banks to see any reasonable reduction in cost of funds, says M. Narendra , Chairman and Managing Director of Indian Overseas Bank. However, the proposed funding of long-term infrastructure loans will offer banks greater flexibility, he said in an interview to Business Line . Excerpts: The Budget has allowed banks to issue long-term infrastructure bonds exempt from statutory reserve provisions. Your thoughts on these measures? The long-term financing for infrastructure has been a major constraint in encouraging larger private sector participation. The proposed relaxation of regulatory requirements such as CRR/SLR may lead to some reduction in our cost of funds. But, as this is applicable only for incremental sources through bonds, reduction in cost of funds may not happen instantly. Long-term infrastructure loans will create more flexibility. When there is a provision of refinance available, we can realistically fix the repayment period. http://www.thehindubusinessline.com/todays-paper/tp-money-banking/funding-of-longterm-infrastructure-loans-will-offer-banks-greater-flexibility-iob-chief/article6250749.ece
INDIAN BANK PROFIT DROPS 35% TO Rs. 207 CR
Chennai: The Chennai-headquartered Indian Bank has a reported 35 per cent drop in net profit at Rs. 207 crore for the first quarter ended June 30, 2014, against Rs. 317 crore reported in the comparable previous year quarter. T.M. Bhasin, Chairman and Managing Director of the bank, pointed out that there was an exceptional profit of Rs. 314 crore on account of trading in securities in the first quarter of 2013-14, as compared to Rs. 36 crore in the quarter under consideration. “If we set aside this treasury profit, the net profit from core operations would have been higher by Rs. 168 crore,” he explained. Total income during the quarter fell to Rs. 4,144 crore ( Rs. 4,195 crore). The gross non-performing assets rose to 4.01 per cent ( Rs. 4,722 crore) from 3.4 per cent ( Rs. 3,722 crore) last year. Net NPAs were at 2.48 per cent, or Rs. 2,856 crore (2.31 per cent, Rs. 2,485 crore in similar previous quarter). During the quarter the bank shed high-cost debt worth Rs. 7,000 crore. Total deposits as on June 30 were up to Rs. 1,55,336 crore ( Rs. 1,49,582 crore). The bank also registered growth in CASA (current account/savings account) share at 29.18 per cent (27.97 per cent). Gross advances improved to Rs. 1,17,653 crore ( Rs. 1,09,213 crore). The bank’s net interest margin dropped to 2.5 per cent from 2.94 per cent last year. The capital adequacy ratio as per Basel II was at 13.71 per cent for quarter ended June 2014, of which Tier I capital stood at 10.97 per cent. As per Basel III, it was at 13.28 per cent. Taking into account the ploughback of profit, the capital adequacy ratio would improve to 13.91 per cent (Basel II) and 13.47 per cent (Basel III), Bhasin said. http://www.thehindubusinessline.com/todays-paper/tp-money-banking/indian-bank-profit-drops-35-to-rs-207-cr/article6250750.ece
RECORDING FIRST GROWTH IN LAST FOUR QUARTERS, PUNJAB NATIONAL BANK PROFIT UP 10% IN Q1
New Delhi: Beating market expectations, Punjab National Bank reported an over 10 per cent increase in net profit, its first growth in the last four quarters. Net profit for three months (April-June) stood at Rs. 1,405 crore against Rs. 1,275 crore in the corresponding previous fiscal — up 10.2 per cent. However, the response on the street was subdued as the bank’s share price closed on Friday at Rs. 924, half a percentage less than Thursday’s closing. One of the reasons for market disappointment could be the increase in bad debts (non-performing assets). Gross NPAs rose to 5.48 per cent (4.84 per cent in April-June 2013-14) of the total advances, while net NPAs rose to 3.02 per cent compared with 2.98 per cent. However, the management expects asset quality to improve, as the pipeline of restructured assets has gone down. The Chairman and Managing Director, KR Kamath, said the net interest margin, a key parameter to judge performance, improved to 3.42 per cent in April-June from 3.2 per cent in January-March. The bank managed to take its total business to Rs. 7.92 lakh crore, showing a growth of 12.9 per cent. Deposits rose to Rs. 4.45 lakh crore, registering a growth of over 12 per cent. Nearly 40 per cent of these deposits fall in the Current Account-Saving Account (CASA) category, which bears low cost. Bank advances registered a growth of around 13 per cent and reached Rs. 3.47 lakh crore at the end of June 2014. http://www.thehindubusinessline.com/todays-paper/tp-money-banking/recording-first-growth-in-last-four-quarters-punjab-national-bank-profit-up-10-in-q1/article6250757.ece
ALLAHABAD BANK SLUMPS 73%
Kolkata: Kolkata-based lender Allahabad Bank on Friday reported a 73 per cent dip in net profit to approximately Rs. 113 crore for the quarter ending June 30, compared with the Rs. 413 crore it reported in the corresponding period last fiscal. Despite an 11 per cent increase in interest income to Rs. 5,049 crore ( Rs. 4,564 crore), a decline in other income and near doubling of provisioning during the quarter dragged down the net profit. Provisioning stood at Rs. 852 crore for the quarter — a 91 per cent increase over the previous April-June quarter. Other income saw a slight dip by Rs. 32 crore to Rs. 501 crore. Total business of the bank grew by 4.24 per cent. Despite attempts to reach him, Rakesh Sethi, CMD, Allahabad Bank was not available for comments. The bank, however, saw a slight improvement in asset quality with both gross and net non performing assets (NPAs) coming down on a sequential basis (between January-March and April-June period). Gross non performing assets stood at Rs. 7619 crore for the April-June period, a decline of Rs. 449 crore, from the Rs. 8,068 crore it reported three months back. The gross NPAs too improved to 5.48 per cent (5.73). http://www.thehindubusinessline.com/todays-paper/tp-money-banking/allahabad-bank-slumps-73/article6250756.ece
ICICI BANK MAY RAISE Rs 1,000 CR VIA INFRA BONDS
Mumbai: Following the Reserve Bank of India’s move to exempt cash reserve ratio and statutory liquidity ratio on funds raised via long-term infrastructure bonds, ICICI Bank, the country’s largest private sector bank, is planning to raise Rs 1,000 crore of funds by issuing such papers. The lender is planning to issue 10-year bonds worth Rs 500 crore with an equal over-allotment option, people familiar with the development told Business Standard. The coupon rate of these semi-annual, 10-year bonds is likely to be 9.15 per cent. Other private sector lenders such as Axis Bank and YES Bank have also announced that they will be raising money via long-term bonds in the coming months. YES Bank plans to raise Rs 3,000 crore in the next 12 months. Axis Bank management said they are yet to finalise details. Sources said, initially, ICICI Bank is testing the market with a smaller issue and might raise more money later, depending on the market appetite. An email sent to ICICI Bank remained unanswered. This comes after the Reserve Bank of India (RBI) incentivised banks to raise long-term bonds by relaxing the norms. The central bank had said that funds raised via long-term bonds (tenor of more than seven years) will be exempt from cash and statutory reserve requirements if the proceeds are used to fund new long-term infrastructure projects and affordable housing. Also, the loans funded via this process will be exempt from the computation of adjusted net bank credit for the purpose of calculating priority sector lending requirements. http://www.business-standard.com/article/finance/icici-bank-may-raise-rs-1-000-cr-via-infra-bonds-114072600158_1.html
FOREX RESERVES RISE TO $317.85 BN
Foreign exchange reserves rose $813.2 million for the week ended July 18 to $317.85 billion, according to Reserve Bank of India data released Friday. Foreign currency assets, a key component of reserves, rose $829.1 million to $291.05 billion. Gold reserves remained unchanged during the week. For the week, Special Drawing Rights fell $11.5 million to $4.45 billion. http://www.business-standard.com/article/finance/forex-reserves-rise-to-317-85-bn-114072600155_1.html
KARNATAKA BANK FACILITY FOR FARMERS
Mangalore: Karnataka Bank Ltd has entered into a memorandum of understanding with Star Agri Warehousing and Collateral Management Ltd (Staragri) for extending storage facilities to farmers and finance against the warehouse receipts. A press statement by the bank said here on Friday that the finance to farmers would be extended under ‘Krishik Bhandar’ scheme of the bank. http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/karnataka-bank-facility-for-farmers/article6250838.ece
DEFERRED TAX LIABILITY TAKES LIC HOUSING FIN NET UP 3%
Mumbai: LIC Housing Finance on Friday posted a net profit of R322 crore, up 3.53% from R311 crore in the same period last year, for the quarter ended June. The company’s profit was hit by provisions of R32.2 crore for deferred tax liability. Net interest margin (NIM) for the quarter was down 11 basis points (bps) at 2.19% from 2.30% in the same period last year. Sunita Sharma, MD & CEO, LIC Housing Finance said, “LIC HFL has delivered a healthy all-round growth in the first quarter. With sentiments improving and incentives in the Budget, we are confident of a good year ahead.” The company recorded a total income of R2,544 crore and showed a growth of 17% y-o-y in Q1. Revenue from operations grew 17% y-o-y to R2,509 crore. The company’s outstanding mortgage portfolio was R93,609 crore, showing a growth of 17% against R80,137 crore in the same period last year. The individual loan portfolio stood at R91,059 crore, a growth of 17% y-o-y. http://www.financialexpress.com/news/deferred-tax-liability-takes-lic-housing-fin-net-up-3-/1273937
CHILD PLANS TO MAKE BIGGER COMEBACK
Mumbai: Child plans are making a bigger comeback in the Indian insurance market, with the trend of buying plans for young children and infants emerging. “We believe this trend is emerging because of increased sensitivity of young parents towards the rising cost of education. For example, the cost of a medical degree (from one of the leading colleges) in India, 10 years and hence, will be around Rs 45 lakh, while the same degree from a reputed college internationally will cost around Rs 2 crore,” said Rishi Piparaiya, director – Marketing & Sales, Aviva Life Insurance. Piparaiya said the industry expected to see more demand from the self-employed classes, although by a small percentage, compared with the salaried class. According to him, Aviva India planned to continually innovate and launch more plans in this space. Unlike traditional life insurance term plans, in child plans, the death benefit is paid if the policyholder dies, and the policy continues with the balance premiums being paid by the insurer. Children’s plans are offered both as traditional and unit-linked. http://www.business-standard.com/article/finance/child-plans-to-make-bigger-comeback-114072600156_1.html
SHRIRAM TRANSPORT REPORTS RS 312.90 CRORE Q1 PROFIT DECLINE
Shriram Transport Finance Company (STFC) on Friday reported a 14 per cent decline in its June quarter net profit at Rs 312.90 crore due to a jump in provisioning for bad assets. The company had posted post tax net of Rs 366.27 crore in the corresponding period last fiscal. Total income grew to Rs 2,015.87 crore for the first quarter ended June 30 from the year-ago’s Rs 1,891.27 crore. Net interest income expanded to Rs 1,015.66 crore, from Rs 961.95 crore in the same period a year-ago. STFC Managing Director and Chief Executive Umesh Revankar said a surge in gross non-performing assets ratio to 3.74 per cent from the year-ago’s 3.09 per cent, coupled with a jump in the provisioning, hurt the bottomline. Provisions shot up to Rs 287 crore during the quarter, up from the year-ago period’s Rs 239 crore, he said. The NBFC’s net interest margin narrowed to 6.54 per cent from 7.01 per cent in the year-ago period. Mr. Revankar expressed optimism over prospects improving in coming months, saying there might be a revival in the infrastructure and mining sectors, which will help the company’s business from the second-half of 2014-15. http://www.thehindu.com/business/Industry/shriram-transport-reports-14-per-cent-decline-in-its-june-quarter-net-profit-at-rs-31290-crore/article6249698.ece
NO RETROSPECTIVE TAX ON DEBT MUTUAL FUNDS
New Delhi: Finance Minister Arun Jaitley on Friday ruled out retrospective application of the Budget proposal to double the rate of capital gains tax on debt mutual funds from 10 per cent to 20 per cent. He proposed an amendment to the effect that redemptions made till July 10 in the current financial year would be exempted from the higher tax rate. “I have reconsidered it and proposed to move an amendment in the Finance Bill that the new tax regime will not be applicable to transactions of sale of units between April 1 and July 10 this year. If you have sold during this period, this (higher tax) will not apply,” Jaitley said in reply to a debate on the Finance Bill, 2014 in the Lok Sabha. He also moved amendments to carry out proposals of the Budget to make changes in transfer pricing to reduce tax disputes. The House later passed the Finance Bill, 2014 with these amendments as well as other changes. With this, the Budget exercise got over in the Lok Sabha. Now, the Rajya Sabha is to return the Bill to the lower House. Jaitely chose to extend the benefit of exemption to redemptions made during April 1 to July 10, but not investments. Mutual fund officials half-heartedly welcomed the move. http://www.business-standard.com/article/economy-policy/no-retrospective-tax-on-debt-mutual-funds-114072500567_1.html
NEW 10-YEAR BOND PRICED AT 8.4% COUPON RATE
Mumbai: The market has priced the new 10-year bond at a coupon rate of 8.4 per cent, 43 basis points below the exiting 10-year benchmark 8.83 per cent 2023 bond. With the auction of the new 10-year bond at a coupon rate much below the existing 10-year bond, the market expects interest rates to fall. In the when-issued market, the yield on the new 10-year bond had even fallen to 8.37 per cent during the intra-day trade on Friday. In the when-issued market, those bonds are traded when the paper is authorised, but not yet issued. The Street expects this bond would soon replace the exiting 10-year benchmark. With the coupon rate coming much lower for the new 10-year bond, the cost of borrowing for the government is going to come down. “Market expects bond yields to come down and the signal is that interest rates will also come down going forward. This bond will become the new 10-year benchmark probably in the next 7-15 days from now. The yield on the new 10-year bond may come down further as traders who could not buy this bond in the auction may look for buying this bond from the secondary market,” said Debendra Kumar Dash, associate vice president (treasury), Development Credit Bank. According to Clearing Corporation of India (CCIL) limited, the bond was last traded at 8.39 per cent on Friday, while the existing 10-year bond yield ended at 8.67 per cent. “The yield on the new 10-year bond might fall to 8.30-8.35 per cent next week due to demand from traders. However, low yield on this bond might not be sustained as the existing 10-year benchmark is trading at a much higher yield. A 30 basis points spread is not justifiable,” said Balginder Singh, a government bond dealer at Andhra Bank. http://www.business-standard.com/article/finance/new-10-year-bond-priced-at-8-4-coupon-rate-114072600157_1.html
SEBI BANS NILESH KAPADIA, 3 OTHERS FOR 10 YEARS IN HDFC MF CASE
Chennai: SEBI has barred Nilesh Kapadia and three others from the markets for 10 years in the front running case at HDFC Mutual Fund. The market regulator also directed three individuals — Rajiv Ramniklal Sanghvi, Chandrakant P Mehta and Dipti Paras Mehta — to return over Rs. 1.75 crore they got through illegal gains. In his 59-page order, Whole-time Member Prashant Saran said the 10-year period for them would be calculated after taking into account the restraint already undergone by them through an interim order dated June 17, 2010. Besides, Sanghvi ( Rs. 1.129 crore), Mehta ( Rs. 22.65 lakh) and Paras ( Rs. 41.331 lakh), who were not directly linked with HDFC MF but were found to be ‘associated persons’ with Kapadia in terms of their market dealings, were directed to deposit the disgorgement amount. The ban order would increase by five years if they fail to deposit the amount within 45 days. The matter relates to trades conducted in 2007 as the exchanges found “certain coincidence” between the trading pattern of the three individuals with that of HDFC Asset Management Company, and referred the issue to SEBI. The regulator had found that trade orders of HDFC AMC were getting executed through a common dealing desk within the AMC, and Kapadia, then Assistant Vice-President (Equities), was its equities dealer since June 2000. The investigation had also revealed that Kapadia was tipping off and advising Sanghvi to trade ahead of the orders of HDFC MF and had helped him make substantial gains in the process. http://www.thehindubusinessline.com/todays-paper/tp-markets/sebi-bans-nilesh-kapadia-3-others-for-10-years-in-hdfc-mf-case/article6250737.ece
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